BITCOIN

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Transcript of BITCOIN

Mainly requires electricity for operation --> promotes renewable energy http://pixshark.com/cash-bag-icon-png.htmhttps://bitcoinmagazine.com/10169/bitcoins-impact-called-social-issues/http://news.mydrivers.com/1/316/316653.htmhttp://www.coindesk.com/price/https://www.cryptocoinsnews.com/cryptocurrency/http://www.coindesk.com/lamborghini-mclaren-bitcoin/https://blockchain.info/charts/hash-rate?timespan=30days&showDataPoints=false&daysAverageString=1&show_header=true&scale=0&address=https://www.mataf.net/en/bitcoin/whathttp://pando.com/2015/03/06/hong-kong-authorities-arrest-five-in-suspected-mycoin-bitcoin-exchange-ponzi-scheme/Original method for Bitcoin miningWhat is Bitcoin ?It is the most widely used cryptocurrencyCryptocurrency - Medium of exchange like normal currencies, but designed for digital use. Essentially lines of code with monetary value.Cryptography - to secure the transaction.How do you get BitcoinsTrading - buying and selling or exchanging cash for BitcoinsMining bitcoinsMining - solving mathematical problems rewardWhat is Bitcoin Mining?YouTube,. (2015). What is Bitcoin Mining?. Retrieved 25 April 2015, fromwww.youtube.com/watch?v=GmOzih6I1zsTransition in Hardware usedover timeCPUsCentral Processing UnitGPUsGraphical Processing UnitASICMinersApplication Specific Integration CircuitWHY ? What is Bitcoin Mining?YouTube,. (2015). What is Bitcoin Mining?. Retrieved 25 April 2015, fromwww.youtube.com/watch?v=GmOzih6I1zsConclusion

ASICMINERNear the seaAdequate water supply for coolingEfficient air cooling as it is near the coastAsicMinerPast, present and future of BitcoinIllegal ActivitiesControversies with BitcoinMonopolized MiningSocial Economical ReferencesBoring, P. ( 2014, 4 February). Bitcoin Could Strengthen The World Economy If Washington Doesn't Destroy It.

Anonymous marketplace-Tor systemNot that easy to track transactionsMixed money flowBitcoin as "currency"Drugs and contrabandsShut down by FBI 2 years after launchedWhy Hong Kong?Economical ImplicationsMUTUAL ACCEPTANCE OF HAVING VALUEBoth parties need to agree that Bitcoin has value and that they are willing to exchange products or services for its worthSeller (owner of house)Paying in BitcoinsBuyerOnly of transaction is acceptedSCARCITYMaximum amount of Bitcoins that can exist 21 millionBitcoin walletlose access and coins are lost for everSCARCITY WILL CAUSE INFLATION!Rapid price fluctuations .ASICMINERHow ASIC Mining influences Hong Kong

Start : February 2010 it was less than 0.01 USDScarcity --> InflationTransactions are based on mutual acceptance of value.

Now : April 29th 2010 it is 235 USDHighest ever : 29th of November 2013 it was 1242 USD ~ forbesOriginal Bitcoin mining - PCs. ASICs cause power imbalance due to large mining capability - leads to a mining monopolyLeading miner responsible for condititons of the bitcoin Capability of disrupting Bitcoin economyCan cancel other transactions or double-spendCause major fluctuations in price Example: GHash majority -> dumping of Bitcoin -> price fall by 9%.THE MINING MONOPOLYASIC chips are immersed in cooling liquidcooling pipesExternal ventilators to dispense heat to the surroundingsNear to Mainland ChinaProximity to chipmakers in ChinaBan on trading Bitcoin in ChinaFreedom in HKNo laws regarding use of BitcoinRecent ban on trading Bitcoin in ChinaFinancial regulation prevents money laundering/other criminal activitiesAllows small businesses to enter marketTreated as a commodity - no VAT in HKLow energy cost availableHigh bandwidthWhy Kwai ChungHow price fluctuations affect the economyeffect of coperate and governmental decisions on the value of Bitcoin Chips produce a LOT of heat Creating an entire new industryAnyone who has enough money to buy ASICMINER shares can technically 'mine' bit coin - without the initial hassle or high investmentOpening up of Bitcoin exchange (one such shop is next to our own univesity!!!)Value of Euro when the Government had negative interest ratesIt is a very powerful tool to fight poverty as it has the ability to transfer money globally .Remittances and fighting oppressive regimes can be tackeled by bitcoin as it has no governing body

Access to creditTheBitGive Foundation exists to harness bitcoin’s tremendous power to innovate the way we tackle charitable giving making it easy to donateCharityTo evade taxation and negative interestConvertFundingWikileaks By using Bitcoins anonymous transactions Wiki leaks cut off from rest of donations is able to surviveIncrease in acceptance and tradingaccess to credit is anything but evenly distributed (especially in the 3rd world countries)Bitcoin is a way to reach millions and act as a bank.These people otherwise might not be able to access traditional banking services. Bitcoin vastly decreases the cost and risk of extending those services to people with low-incomes and poor credit scores.Increase in tradingbitcoins work pretty much like cash without borders.More companies worldwide accept bit coins for their product and servicesNear industrial areaHigh bandwidthEasier accessibility to equipment and shipments - important to import latest ASIC technology History of ASICMINERin Kwai ChungOwner operates under the pseudonym - FriedCatStarting capital - Virtual IPO (Initial Public Offering) Return for Investors - Dividends from profits from Bitcoin miningCOOLING SYSTEMASICMiner Kwai Chung boosted ASICMINER's total mining capacity Along with other mining facilities that ASICMINER controls (BTC Guild, BitMinter) - total share of 26% Expected to grow more as new chips to be introduced, moving from Gen1 -> Gen3Could give majority Potential for use in developing countriesThe developing world and BitcoinNigeria is blacklisted and doesn't have access to online payment schemes such as PaypalDifficulty in receiving foreign funds from family membersCompanies that do provide have very high banking chargesStart of Kwai Chung minerGlobalHOw it can effect daily lifeLocalHong Kong’s MTR-issued Octopus card has made daily purchases frictionless and fast. bitcoins work pretty much like cash without borders.Bit coins reduce the time and money required for foreign remittance making transactions cheaper and faster It can help fund areas where there is a restriction in transaction of money eg A war torn country with a financial blockade in placeEliminates barrier for entry to earn money in BitcoinDividends paid in Bitcoin1234Trading BitcoinsRecapBitcoin --> Cryptocurrency with monetary value ASICMiner --> Mining more efficientlyWhy Kwai Chung --> Commercial location & Access to resourcesSignificance--> Increase usage and acceptance

Increase usage Impact on ArchitectureSpecialized features need to be incorporated into the building Promotes Usage oriented construction.Ease of use in developing countries, where access to banking is difficult?Moved to HK 5 arrestedTend to generate a tighter regulationPonzi-schemeMissing Fried CatFried CatDrive force of ASICMINERExplored HK Bitcoin marketStopped some sold Bitcoin miners' service with unclear reasonsSuspected missingSocial concern -> "Purist"Law concern -> tighter Profits way flippedMiningTechnology - HarderTradingPreferedBusiness senseHow "Purists" define "freedom" and "fair" - Even cheating as they want?Tighter legistationSocial MistrustImpact on GlobalizationKanak Kabara, Abhinav Joshi, Vishmika Fernando, Mark ChenWhy is the asic miner in Kwai Chung operating in secrecyonly images publicly available showing the exterior of the building where the Kwai Chung ASIC miner is located. Under closer inspection...Branding on a nearby buildingBuilding clad withblue tiles on the exteriorlocating and identifying the buildingBuilding clad withblue tiles on the exterior on the opposite side of the roadBranding on a nearby buildingaccess to the building was denied...entered an abandoned building on the opposite side of the roadRoof top view of the abandoned buildingHighly industrial area with near by port and multiple points of commerceAt the time the ventilators were not operationalFurther deductions...It is possible that the enterprise has shutdownIt could also be deduced that the reason for the operations to be of such clandestine nature to be due to the fact that mining Bitcoins is not a widely accepted practice